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With unemployment at a six-year high of 5 per cent of the population of 4,300,000, tough economic times have led to jobs going to native New Zealanders first.

One reason is the decision by Kiwis who have lost jobs overseas to return and seek work at home.

Employment minister Paula Bennett says more than 3,000 of the 26,000 who returned last year ended up on benefits.

Jobless foreigners risk losing their work visas and having to return to Britain, with some accusing the New Zealand government of pursuing a 'jobs for Kiwis' policy.

A migrant assistance group, created by two Britons who emigrated
nine years ago, has infuriated the government by issuing a pamphlet
that claims the attitude of officials is: 'We've taken your money, used
your skills, now b****r off!' Mike Bell, of the Move2NZ group, said:
'We are seeing families who have worked here years being effectively
kicked out in two weeks.

'Many have existing jobs or offers of
work in areas listed by immigration as being in dire shortage.
Employers are tearing their hair out as there's nothing they can do.'

Some
20,000 skilled Britons went to New Zealand to work in 2008. They were
given visas allowing them to take jobs and apply for permanent
residency after two years.

Beautiful: Brits have enjoyed the good life in New Zealand but now face being kicked out if they are made redundant

But the 'Essential Skills' policy of bringing in experts from abroad appears to be in tatters. This follows a report last month from the New Zealand auditor general that highlighted bad decision-making in the immigration department.

Mr Bell said New Zealand lured skilled foreigners who filled gaps in the jobs market and added more than £3billion a year to the economy.

He said: 'The government now appears to be working hard to sabotage this lucrative source of income by effectively kicking out staff that employers badly need.

'These workers have been invited. But they are effectively being told New Zealand doesn't want them any more. Many have applications for new or renewed permits declined, even if their occupations are on the 'Essential Skills' list. Desperate employers are denied permission to keep skilled staff.'

Mr Bell said one European family had ended up separated and living on charity, adding: 'We are just seeing the tip of the iceberg.

'Horrible situation': With their savings gone and dream now a nightmare this family are going back to Scotland